KIM JONG-UN PURGE PYONGYANG BLOODBATH

● **”Buy-High, Sell-Low Blues”**

Reinterpreting Warren Buffett’s Investment Principles: Dollar-Cost Averaging, Stop-Loss Orders, and the Reality of Investment Psychology

This article delves deeply into two crucial strategies for realistic investing—dollar-cost averaging and stop-loss orders—based on Warren Buffett's principle of 'preserving capital.'
It also analyzes common errors in investment psychology through real-world cases and experiments,
exploring how to stay disciplined in the market without forgetting these principles,
and how this affects long-term investment returns, accompanied by real-life examples.
By reading to the end, you will understand the true core of practical investment methods that no one has ever told you.

The First Principle of Investment Success: Capital Preservation

Warren Buffett's famous quote, "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1," signifies the ultimate in risk management.
The essence of the investment strategy required for capital preservation can be summarized as 'dollar-cost averaging' and 'stop-loss orders.'
We will explain how to implement these two principles in a practical way that can be immediately applied to actual investing.

1. Dollar-Cost Averaging: ‘Buying’ is Never Easy

Many investors mistakenly believe that buying is easy and selling is difficult.
However, in reality, buying requires careful consideration,
and simply clicking the buy button can lead to disastrous results.
You must scrutinize yourself like a strict manager, the ultimate judge of protecting your money,
requiring prior study, stock valuation analysis, and clear definition of target investment amount.
Pre-set your target investment amount and purchase price range (band), and
use planned dollar-cost averaging to diversify risk, rather than emotional responses during high stock price volatility.
Dollar-cost averaging is different from simple 'averaging down.'
(e.g., if planning to invest 10 million won, buy in 2-3 installments first,
never make additional unplanned purchases)

2. The Psychology of Stop-Loss Orders: Underestimating Gains, Overestimating Losses

The biggest obstacle that makes investing difficult is human investment psychology.
We tend to undervalue (underestimate) 'profits' compared to reality,
and fear and irrationally avoid (overestimate) 'losses.'
Experimental examples:
- Even with high expected values (probabilities), we choose only certain gains and try to avoid certain losses.
- Most people ignore losing stocks,
  and hastily realize profits on winning stocks (early selling).
When in a loss position, it becomes even more difficult to sell, leading to a vicious cycle where losses continue to grow.
Overcoming 'psychological pain' is key to stop-loss orders.
Practical investors clearly define stop-loss criteria (e.g., -10%) from the initial investment and
implement them mechanically.

3. Contrarian Investing: Thinking Against the Crowd

To survive in the market, you must act contrary to the psychology of general investors.
Let profits run as long as possible, and cut losses short.
It is necessary to fight the instinct to hastily sell profits and drag out losses.
The key is to avoid capital losses and cultivate the habit of trying to maximize profit potential.

4. Investing is Training: Continuously Build ‘Investment Muscle’

Investment skills can also grow through repeated training.
Training is not just a simple skill, but a 'mental strength' exercise to overcome fundamental investment psychology.
Recognize the common psychology that everyone else knows, and
1. execute stop-loss orders immediately, and 2) let profits run longer.
This contrarian investment habit is directly linked to long-term returns/market survival.

Key Summary

– For the best investment principle of ‘capital preservation’:
1) Calm dollar-cost averaging
2) Thorough stop-loss orders
3) Recognize errors in human psychology and act in reverse
4) Habituate investment through continuous training
– The key to performance is cutting losses short and letting profits run long!

< Summary >
To adhere to Warren Buffett's 'capital preservation' principle,
dollar-cost averaging and stop-loss orders must be practiced.
Recognize that human nature makes us take profits quickly and ignore losses,
and maximize contrarian thinking to
cut losses short and let profits run long.
This is how you can survive in the market in the long term and
maximize returns.

Warren Buffett’s Investment Method: Summary of Capital Preservation, Dollar-Cost Averaging, and Stop-Loss Strategies

Preserving investment capital is the best investment principle. Dollar-cost averaging and stop-loss strategies are key to this.
Many investors feel that buying is easy and selling is difficult, but in reality, buying itself requires careful consideration.
Planned dollar-cost averaging, careful self-assurance before buying, and pre-setting target amounts/price bands are essential.
Stop-loss orders are difficult due to human psychology, but must be implemented to survive in the market.
By taking advantage of the fact that human investment psychology underestimates expected gains and overestimates losses,
continuously practicing contrarian investing and investment habit training to cut losses short and let profits run long is
the key to long-term performance.
Stock investment, diversified investment, investment strategy, investment psychology, risk management, etc., are practical investment methods that also work in the global financial market.

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● China Prepares Kim Jong-un Replacement-Bloody Purge Looms

2024 Russia-North Korea Exchange and China’s Reaction: An In-depth Analysis of Subtle Trilateral Economic Signals

Key Points to Check in This Article

– Recent trends in economic and diplomatic exchanges between Russia and North Korea
– The discomfort felt by the Chinese leadership and changes in the economic landscape of Northeast Asia
– Internal North Korean affairs, Kim Jong-un risk, and China’s response cards
– The impact of future trilateral relations on global markets and geopolitical risks

Reading this article, you can grasp the complex intentions of Russia-North Korea exchanges and China, the latest calculations of key economic players in Northeast Asia, and the core economic issues that should not be missed in the future global economic outlook.

Russia-North Korea Bilateral Exchanges: Recent Trends and Economic Significance

Since 2023, Russia and North Korea have been showing moves to strengthen cooperation in military, energy, and food support.
Especially in the first half of 2024, tangible economic and logistical exchanges have become visible, including arms deals, infrastructure cooperation between North Korea and Russia, and mentions of Russia’s food and crude oil support to North Korea.
Due to Western economic sanctions, Russia is seeking a new route to escape China by joining hands with North Korea, and North Korea is seeking to resolve its economic difficulties and strengthen its military power.
Here, among the five most important global economic keywords, “Geopolitical Risk,” “Supply Chain,” “Energy Security,” “Diplomatic Policy,” and “Global Financial Market” are all closely affected.

China’s Official Position: Uncomfortable Feelings of ‘I Don’t Want to Explain Anymore’

Beijing’s official message is ‘Already explained several times,’ avoiding further mention.
In fact, within China, there is a growing sentiment of feeling ‘betrayal and disregard’ as North Korea leans towards Russia.
Kim Jong-un’s recent remarks strongly denying the contribution of the Chinese Communist Party to North Korea’s current state are being strongly resented.
This indicates a change in the traditional China-North Korea alliance framework, increasing volatility in the economic safety net of Northeast Asia.

North Korea’s Internal Risks and China’s Response Cards

China possesses top-level intelligence in managing the ‘Kim Jong-un card.’
Major information such as Kim Jong-un’s health data and trends among North Korean elites are systematically monitored and analyzed.
Signals are detected that even ‘leadership change’ to maintain influence over North Korea can be considered if necessary.
Preparedness to strengthen economic and political pressure in response to strengthened Russia-North Korea cooperation.

External Variables and Global Economic Ripple Effects

The deepening of the Russia-North Korea alignment and the corresponding chain of military and economic policies centered on the US, Japan, and South Korea.
As China’s position as a traditional supporter of North Korea weakens, risk factors related to the Northeast Asian and global supply chain and energy security increase.
The global financial market is also inevitably subject to short-term volatility due to geopolitical conflicts and changes in diplomatic policies.

Latest Economic Outlook and Significance of Trilateral Relations

The dynamics among the three Northeast Asian countries (Russia, North Korea, China) are a key variable in the future global economic outlook.
In particular, if North Korea maintains a closer relationship with Russia, China’s economic influence is expected to weaken and the reorganization of the East Asian division of labor system is expected to accelerate.
Uncertainty is expected to increase further, focusing on key economic keywords such as geopolitical risk, global financial markets, diplomatic policy, supply chain, and energy security.

< Summary >

The strengthening of Russia-North Korea exchanges, the displeasure and response cards felt by China, and the resulting deepening of global economic risks and regional variables are affecting the Northeast Asian and global markets.